Auto insurance settlements typically derive from extensive negotiations. Because an insurance company may be unwilling to provide you with all the money you request for your damages, you will have to negotiate an amount of money that is acceptable to all parties.
Don’t Play Hardball
While you might think it would be fun to be inflexible and play hardball with the insurance company, doing so will get you nowhere. Digging in your heels and rejecting any offers that are not the exact amount you request will often lead to negotiations failing and you need to file a court case. Litigation is vastly more time consuming and expensive, and so it is in your best interest to try and resolve your case through negotiations. Be flexible and reasonable during negotiations to assure that they will progress as smoothly as possible.
Provide Yourself Room to Maneuver
During negotiations, the parties start with a sum of money that they are willing to pay or willing to accept and move upwards and downwards until they meet somewhere in the middle, at an amount acceptable to both parties. Because of this, begin your negotiations by requesting a sum of money that is higher than what you need or want, so that you can work downwards, closer to the amount you expect or are willing to take.
Know Your Lowest Point
Negotiating does not mean that you have to accept less than the minimum that you need. Before stepping into negotiations, know the absolute lowest amount of money you can accept to cover your expenses and make you happy. You do not have to share this amount with anyone, but it will serve as a marker for you to identify when negotiations have failed because the amount of money on the table is too low.
Be Prepared
The most important part of negotiations is to be prepared to support your monetary request. Have all relevant documents, receipts and any other information in your possession so that you may justify why you are requesting the amount of money you seek. This will provide you with stable ground during negotiations.
Be Reasonable
Most parties make the mistake of being unreasonable during negotiations, both in their request and in their expectations. Negotiations do not occur quickly and you will most likely not become wealthy from them. Understand that the purpose of negotiations is to provide you with compensation to repair the damages and enable you to seek treatment for your medical injuries, and not to make you a millionaire.
Getting Legal Advice
If you are nervous about negotiating your insurance settlement, seek legal help. Attorney’s are trained in negotiating techniques, and an attorney will advise you on the best tactics to use for your claim.
